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Business processes and information systems overlap.

A) True
B) False

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Enterprise resource planning (ERP)vendors do not include business processes as a part of the software package.

A) True
B) False

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Repositories are most often collections of data.

A) True
B) False

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Which of the following is the first step in a business process management (BPM) cycle?


A) defining business process requirements
B) creating models of business processes
C) implementing the needed business processes
D) assessing business process effectiveness

E) A) and D)
F) None of the above

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In which of the following situations will credit checking be made the first step in the procedure of processing an order?


A) during recession
B) during a merger
C) during an acquisition
D) during inflation

E) B) and C)
F) A) and D)

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Both information systems and business processes can be purchased off-the-shelf.

A) True
B) False

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Every activity of a business process involves an information system.

A) True
B) False

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Describe business process management (BPM)in brief.

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Business process management (BPM)is a cy...

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Which of the following is an example of an inter-enterprise scope?


A) supply chain management
B) enterprise resource management
C) accounts management
D) customer relationship management

E) C) and D)
F) B) and C)

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How can a change in customers, product lines, and supply chains affect business processes?

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A new category of customers could mean t...

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A customer's credit is checked before checking the availability of goods in order to ________.


A) increase the rate of credit approval of customers
B) arrange for the special terms requested
C) prevent the wastage of shipping-verification labor
D) align the processes with organizational goals

E) B) and C)
F) A) and B)

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Which of the following statements is true about designing, creating, and implementing a new business process?


A) Process changes that don't work can be undone easily.
B) Computer simulation of alternative processes is inexpensive.
C) Technology may change during the development process.
D) Resolution of implementation problems is easier for enterprise processes.

E) None of the above
F) A) and B)

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The components and purpose of a business process and an information system are the same.

A) True
B) False

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The difficulty of creating an as-is process diagram depends on the sophistication of the organization.

A) True
B) False

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Which of the following statements is true about choosing whether to develop information systems (IS) or business processes first?


A) For a business process that is being constructed, building an information system (IS) after creating the business process is likely to cause problems.
B) If an information system is built after the creation of business processes, other business processes that use the same information system (IS) can be integrated easily.
C) If business processes are built after the information system (IS) development process, activities that are not part of the IS may not be considered.
D) If an information system (IS) is built first, the development team should determine the requirements by itself.

E) B) and D)
F) All of the above

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C

Give an example to illustrate how business processes fail to work when misaligned with an organization's goals.

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Business processes do not work well when they are misaligned with an organization's goals, objectives, or competitive strategy.The most obvious reason for changing a process is that it has efficiency or effectiveness problems.Consider a sales process.If the organization's goal is to provide high-quality service, then if the process takes too long or if it rejects credit inappropriately, it is ineffective and needs to be changed.

Which of the following steps is the most appropriate if a company decides to accept more risk and sell to companies with lower credit scores?


A) modifying the credit checking process
B) implementing different ways of checking credit
C) approving special terms before checking the credit
D) shipping the inventory directly from the manufacturer to lower the credit

E) All of the above
F) A) and B)

Correct Answer

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Acecom Automobiles, an automobile manufacturing company, has always stocked steel and aluminum for its manufacturing process.However, it has now decided to procure the material directly from the manufacturer, instead of stocking it.This decision will lead to a change in Acecom's ________.


A) product line
B) supply chain
C) credit policy
D) distribution structure

E) A) and C)
F) A) and B)

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B

Creating computer programs and designing databases in-house is more affordable than buying off-the-shelf software.

A) True
B) False

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The credit-check process is independent of the inclusion or exclusion of new categories of customers.

A) True
B) False

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